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It doesn't assume all villains play perfectly. It plays according to a trial and error strategy which was developed by letting it play against itself for millions of hands. Theoretically that could produce a pretty strong game, but since Snowie is restricted to using a fairly limited (and often bad) choice of bet sizing it means in practise that it assumes your opponents play horrifically in quite a few spots.
One example I have seen on 2p2 was a guy shoving a non-nut FH (using both holecards) on the river, and Snowie telling him it's a bad spot for a bluff.
What they have done here is very interesting, and Snowie2 could be pretty scary, but from what I have read there is not much danger of this solving NLHE yet.
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